This is good advice. I've found that this and working with solo people paying out-of-pocket works fine (providing you get some assurance of payment - I usually get 50% up front). The worst clients I've experienced tend to be people who run a business with 5-10 employees but still have enough time to work with you directly. I work with these types of businesses least but in 3 years of freelance work I've had 3 screw me over.
Here's why I think it happens.
People 'playing with house money' will pay whatever it takes to get the job done because they are removed from the money - it isn't theirs.
Solo people who want work done (usually a website or app idea) want a completed product after paying you half up front. They don't want to bail because they want something to show for their money. They probably can't afford to lose the 50% and get someone else.
The small businesses I mentioned can afford to lose the 50% they pay up front (unlike the solo people). So if what you are doing doesn't meet their exact (constantly evolving) standards they are happy to kill the project. I've found these people constantly make changes to what they want and add extra features (which of course, they say 'just add to the bill'). I try my best to avoid these clients now.
Another reason to play with "house money" is how most corporate budgets work.
Yes, the money isn't "theirs"--they don't open up their own wallet to pay you--but they also NEED TO SPEND their budget. A budget that isn't spent at the end of the quarter/year/whatever simply vanishes, and it's actually harder for that person to request a same-size budget next time (they will be asked why they need the money if they didn't even use it all the last time around).
People who use "house money" are good clients because their job is to get the project done so it looks good on their portfolio. The house money is just a tool for them to get things done. As long as you deliver, they would love you.
This is good advice. I've found that this and working with solo people paying out-of-pocket works fine (providing you get some assurance of payment - I usually get 50% up front). The worst clients I've experienced tend to be people who run a business with 5-10 employees but still have enough time to work with you directly. I work with these types of businesses least but in 3 years of freelance work I've had 3 screw me over.
Here's why I think it happens.
People 'playing with house money' will pay whatever it takes to get the job done because they are removed from the money - it isn't theirs.
Solo people who want work done (usually a website or app idea) want a completed product after paying you half up front. They don't want to bail because they want something to show for their money. They probably can't afford to lose the 50% and get someone else.
The small businesses I mentioned can afford to lose the 50% they pay up front (unlike the solo people). So if what you are doing doesn't meet their exact (constantly evolving) standards they are happy to kill the project. I've found these people constantly make changes to what they want and add extra features (which of course, they say 'just add to the bill'). I try my best to avoid these clients now.